Filing your taxes in Canada have more benefits than you know
Filers in Canada can also enrol in several credit and benefit programs
Toronto: Tax season is in full swing in Canada, and the deadline for filing 2023 fiscal year taxes is April 30th, 2024. This annual obligation is significant for many new arrivals and international graduates who may find the Canadian tax legislation challenging.
The process of tax filing, often viewed as burdensome, also presents numerous advantages. Foremost among these is a tax refund, wherein the taxpayer may receive reimbursement against excess taxes paid throughout the fiscal year.
The likelihood of a tax refund is contingent not only upon excess payment but also on various factors such as tax credits, deductions, and expenses. Tax credits, for instance, represent monetary incentives provided to people who have participated in specific programs. A certain amount is subtracted from the filer's income in deductions, reducing tax liability. Expenses reflect the total tax obligation accumulated during the year due to unpaid taxes.
Furthermore, tax filers in Canada are eligible for numerous credits and benefits tailored to suit individual criteria. These include:
- The Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit is a tax-free quarterly payment designed to assist individuals and families with low incomes offset their GST or HST payments.
- The Canada Workers Benefit is a refundable tax credit intended to support low-income earners and families in the workforce.
- The Canada Training Credit, introduced in 2020, offers a refundable tax credit to aid individuals in covering eligible training fees, provided they are at least 26 years old.
- The Disability Tax Credit is a non-refundable tax credit that aids individuals with disabilities or their caregivers reduce their income tax burden. This may also lead to enrollment in additional federal and provincial tax programs.
- The Canada Child Benefit is a tax-free credit for families with children under 18. it is designed to alleviate the costs associated with child-rearing.
The Canadian government website provides a comprehensive list of tax deductions, credits, and expenses and complete guidelines for tax filing.